RNS Number:3624N
Imperial Tobacco Group PLC
09 July 2003


Update on Reemtsma Investigation and Board Change

On 14th January 2003, Imperial Tobacco announced that the German customs
authorities were investigating alleged trading violations by a number of people,
which included seven Reemtsma employees.  The investigation relates to alleged
activities which occurred prior to the acquisition of Reemtsma by Imperial
Tobacco.

The Board of Directors of Imperial Tobacco ("the Board") continues to manage the
situation in line with good corporate governance practice. As reported at the
AGM in February 2003, an Independent Committee of the Board was established
under the chairmanship of senior Non-Executive Director Anthony Alexander to
review the circumstances giving rise to the investigation. A Steering Group of
senior executives was also established to assist the Board committee.

Whilst the investigation in Germany has continued, no new allegations have been
brought and no charges have been made in connection with the investigation.
However, the Company's legal advisors have progressively gained a more thorough
understanding of the investigation, which leads the Board to conclude that the
process will continue to be complex and lengthy.

Given that the investigation could last for several years and after careful
consideration, the Board believes that it is in the best interests of all
concerned for the seven employees to be suspended from today on full pay until
the investigation is completed. The employees include Manfred Haussler, Sales
and Marketing Director of Imperial Tobacco.  Mr Haussler has asked the Company
to accept his resignation as a member of the PLC Board and as Speaker of the
Vorstand, Reemtsma's Board of Directors, as a consequence of his suspension.
The Company has today accepted his resignation.

Mr Haussler's operational responsibilities will now be managed by Bruce
Davidson, Managing Director, International.  Mr Davidson will assume full
responsibility for all sales and marketing operations outside the UK.

Excellent progress continues to be made in integrating the Reemtsma operations
into the enlarged Imperial Tobacco Group. The Board is confident that neither
the performance of the Group nor the integration of Reemtsma will be affected by
these developments.

Derek Bonham, Chairman of Imperial Tobacco Group PLC, said:

"The employees concerned will continue to receive the company's full support
during the investigation. However, in light of the complexity of the process and
the potential duration of the investigation, the Board has concluded that as a
matter of good corporate governance procedure, it is in the best interests of
the company to suspend the seven employees who are under investigation."

Gareth Davis, Chief Executive of Imperial Tobacco Group PLC, said:

"With the strength and depth of Imperial Tobacco's management team, the Board is
confident that these changes will not affect the day-to-day running and
performance of the company."

ENDS


Enquiries

Alex Parsons                                        office   +44 (0)117 933 7241
Group Media Relations Manager

Nicola Lindsay                                      office   +44 (0)117 933 7082
Investor Relations Manager

www.imperial-tobacco.com


Notes to Editors

*    Imperial Tobacco continues to co-operate fully with the German customs 
     authorities

*    Imperial Tobacco is the world's fourth largest international tobacco 
     company and employs 17,500 people


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